Claroty Secures $140 Million in Latest Funding Round

Claroty has secured $140 million in new funding, bringing its total funding to $235 million.

The Series D financial round was co-led by Bessemer Venture Partners’ Century II Fund and 40 North. Claroty said the funding round marks the largest investment ever made within the industrial cybersecurity sector.

Additional strategic investors include LG and I Squared Capital’s ISQ Global InfraTech Fund. All previous investors, including Team8, and long-time customers and partners Rockwell Automation, Siemens and Schneider Electric, also participated.

Claroty’s Yanniv Vardi

Yaniv Vardi is Claroty’s CEO.

“At a high level, the funding gives us more resources to help our partners develop the skills, tools and processes necessary to execute across the entire enterprise security services life cycle,” he said. “The more we grow our headcount, the more support our partners will receive. And the more we enhance our best-in-class product portfolio, the more value our partners will be able to extend to the end user.”

Claroty Funding to Accelerate Expansion

Claroty will use the new funding to accelerate its expansion into new verticals and regions. Moreover, it plans to further enhance its product portfolio.

Claroty’s partners aren’t just an extension of its sales and technical teams, Vardi said. They’re a “critical part of the Claroty fabric protecting our mutual customers from successful cyberattacks.”

“We designed our strategy to address the market mainly through our partners, and thus have established a global channel partner program to make sure we not only select the right organizations to partner with, but also to ensure we support them in an effective execution plan,” he said.

Claroty plans to dominate all of the different verticals it’s targeting.

Claroty expanded its partner coverage by 50% in 2020. It added Deloitte, KPMG, PwC, CrowdStrike, Atos, Yokogawa and others to its new Focus Partner Program. It launched in March.

Competitive Advantage for Partners

Vardi said no other technology vendor in this space is better equipped to be the market leader.

Partnering with Claroty is a competitive advantage in itself, he said. That’s because of the resources is has to deliver the “best technology solutions on the market.”

“We will continue to focus on helping our partners deliver the most effective high-value services and management platforms across customers’ IT and OT infrastructure ecosystem on-premises and in the cloud,” Vardi said.

Claroty has worked closely with Pfizer to secure its COVID-19 vaccine supply chain in its race to meet global demand.

David Cowan is a partner at Bessemer Venture Partners.

“Since our first investment in Claroty in 2016, the company has continued to demonstrate that it has the best vision, team and technology to address the unique challenges in the critical infrastructure security sector,” he said.